Property tax; shareholder limit for entity-owned agricultural homestead property increased.

HF 1423 amends Minnesota Statutes section 273.124, subdivision 8, to increase the maximum number of shareholders, members, or partners allowed for certain agricultural entities to qualify for homestead property tax treatment from 12 to 18. This change directly affects family farm corporations, joint farm ventures, limited liability companies (LLCs), and partnerships operating farms, allowing them to have up to 18 qualifying members while still qualifying for class 1b or class 2a property tax classifications. The bill does not alter tax rates but expands eligibility for existing homestead tax benefits by raising the shareholder cap. It takes effect for homestead applications filed in 2025 and later.